Late last year we brought you the news that despite all of the big title releases in the run up to Christmas, the GAME Group had seen a big drop in sales. Now it seems that the retailer GAME may be teetering on the edge as it fights for survival.
There have been various rumors circulating recently that the store wouldn’t be able to stock this week’s big releases such as Soul Calibur V, Final Fantasy XIII-2, and Metal Gear Solid: HD Collection. But according to MCV the company is currently processing the titles in order to provide them this week.
It’s not all good news though for the company as it has been having issues regarding credit insurance after its financial position has reportedly changed since the start of the year. The lack of credit insurance was one of the reasons that pushed retailer Woolworths into administration back in 2008, as suppliers became reluctant to supply goods to the chain if it meant they would have to foot any losses due to a collapse.
GAME is now working individually with its publishers to find a solution to the financing problems, and the retailer has been reassured how supportive the games industry has been so far. It is currently engaged in conversations about upcoming releases. It would surely benefit the games industry more if GAME survives and continues providing an outlet for future releases and hardware.
There have also been rumors that staff have failed to receive their wages, but this is untrue as well. The company revealed that the lack of Resident Evil: Revelations was down to a website error and nothing more sinister.
It does seem though that the retailer like many others is facing some tough challenges ahead, as it has already admitted it may fail to meet covenants requirements of some of its lenders. One publisher executive did state though that no credit “means no stock for the stores”.
It is obvious these stock claims are unfounded, but it is clear there is a tricky situation going on behind closed doors. Rival retailer HMV has also had some tough times recently and has announced a new deal with some of its suppliers as it looks to improve its financial situation. The many staff at the GAME Group will be hoping something similar can be achieved by their employer.
Do you still shop in GAME or Gamestation?